98%(43)42 out of 43 people found this document helpful
This preview shows page 2 - 5 out of 5 pages.
Montgomery Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?A.Cash increases and Accounts Payable decreasesB.Cash increases and Accounts Receivable decreasesC.Cash increases and Service Revenue increasesD.Accounts Receivable increases and Service Revenue increases
4/23/18, 3)18 PMSample Exam Chapters 1,2,3-Kelly AcostaPage 4 of 1415.16.17.Diamond, Inc. had the following transactions during June:Performed services for $2,000 on account; received cash on account, $8,000; paid $700 for repair expense; paid$1,800 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions?Country Homes Corporation just recorded a transaction in its books. If this transaction increased the total liabilities by$10,000, then ________. Springer Corporation had the following transactions in August:Earned of revenues on account; collected from a customer for services provided last month; incurred of repair expense and paid cash; paid for rent that it owed from the previous month.$5,000$6,000$700$600What is the net income in August?
4/23/18, 3)18 PMSample Exam Chapters 1,2,3-Kelly AcostaPage 5 of 14